Moderate Income Purchase Assistance Program (MIPAP)

MIPAP Funding is now available to qualified homebuyers. For first-time buyers wanting to purchase a home in Arlington, this program provides a deferred-payment, no-interest loan of up to 25% of the home purchase price. The loan may be used to cover a portion of the down payment and all closing costs. Program funding availability is on a first come, first served basis to qualified homebuyers. The MIPAP loan acts as a 2nd Mortgage. The 1st Mortgage must be a conventional loan from a lender approved by VHDA (Virginia Housing Development Authority). Themaximum purchase price is $500,000 and the maximum loan amount is $112,500.

MIPAP uses a shared appreciation model, which means there are no interest or monthly loan payments over the course of the loan. Instead, when a homebuyer chooses to sell or refinance the property, an appraisal of the property will be done to determine if the property has increased in value. If the property value has increased, the homebuyer would owe the County the original loan amount plus a proportionate share of the net appreciation (up to 25%).

MIPAP requires that applicants follow a pre-approval process- which may take up to 45 days. If pre-approved, the applicant will receive a maximum loan amount to be added to the 1st trust amount for purchase of a home. The Pre-Approval certificate is valid for 6 months.